Industrial and logistics developer P3 closed transactions for 78,000 square meters of office and logistics space in Romania in the first nine months of this year. Of the total transactions, 34% are new long-term contracts, while the rest comprises short-term contracts or extensions of existing lease agreements.
As part of the local development strategy, P3 inaugurated a new business segment, urban logistics. This year, P3 acquired a plot of land of about 4 hectares in the eastern part of Bucharest, inside the ring road, where it intends to develop a warehouse of 18,000 sqm.
“The logistics companies continue to have the largest share in our discussions with customers, followed by retailers and distributors. Although we did not see a negative impact on the volume of transactions, we do see concerns from our customers about the coming year, given the impact of general price increases on purchasing power. Given the rising cost of utilities, we will continue to prioritize investment in energy efficiency and sustainability measures across our portfolio, after receiving the BREEAM-In-Use Very Good standard for all existing logistics buildings within P3 Bucharest A1 last year," said Sînziana Pardhan, Managing Director of P3 in Romania.
At group level, P3 completed 300,000 sqm of new developments, while a similar figure is under construction, with almost half of the space pre-let.
“We see strong demand from tenants and in many markets rent levels have increased significantly. Right now, we see the future as more challenging, with rising interest rates, construction prices, yields and returns expectations. Supported by our shareholder, we are carefully managing our existing portfolio and are actively seeking attractive growth opportunities, be it new developments, acquisitions of existing assets, forward funding transactions or acquisitions of entire portfolios or even platforms," added Frank Pörschke, CEO of P3.
